Easily Replace Mandatory Field in the Contract Leasing

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How to Replace Mandatory Field in the Contract Leasing

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[Music] hello again everyone Im attorney Robert fleshes before you enter into a residential lease agreement as a tenant or if youre a landlord drafting a rental agreement to give to a tenant you really need to watch this video Im going to tell you about seven possible provisions that could be included in the lease that could be illegal rendering the entire lease void which means the lease isnt enforceable and if you find this video helpful please consider subscribing to my channel remember that every state has different landlord tenant laws but the seven contract terms that Im going to discuss in this video are probably illegal in most states the illegal terms that Im discussing do not impose criminal liability on the landlord first lets talk about the form of the lease many landlords download boilerplate leases from the internet in order to avoid paying attorney to prepare a valid and effective residential lease or to pay for a state-approved lease containing enforceable terms

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What is substantive Subsitution right?

1.4 Substantive substitution rights. The existence of substitution rights may result in the determination that a specific asset has not been identified. If an asset is implicitly specified because the supplier does not have any alternative assets available to fulfill the contract, substitution rights do not exist.

What qualifies as lease modification?

A lease modification is defined as a change in the scope of a lease, or the consideration for a lease, that was not part of the original terms and conditions of the lease.

What is substitution of rights?

Substitution rights allow you to take an underperforming property out of a lease. Addressing underperforming locations through substitution rights is similar to buying an insurance policy against a propertys downside risk.

Is the party who owns the asset?

The lessor is the legal owner of the asset or property, and he gives the lessee the right to use or occupy the asset or property for a specific period.

Which two conditions must be met for a contract modification to be accounted for as a new lease?

The two criteria are: The modification grants the lessee an additional right-of-use not specified in the original lease (for example, the right to use additional assets or additional floors/space in a building)

What triggers lease remeasurement?

There is a docHub event or a docHub change in circumstances that is within the control of the lessee that directly affects whether the lessee is reasonably certain to exercise or not to exercise an option to extend or terminate the lease or to purchase the underlying asset.

What is an example of a substantive substitution right?

The rail cars and engines used to transport the customers goods are not identified assets. The supplier has a substantive substitution right to replace the rail cars and engines as a result of: the supplier having the practical ability to substitute each car and engine throughout the period of use.

What is substantive substitution right?

A supplier is said to have a substantive substitution right when both of the following conditions exist: The supplier has the practical ability to substitute alternative assets throughout the period of use and. The supplier would benefit economically from exercising its right to substitute the asset.

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